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Indian Hospitality Industry Presented By- Mr . Shashank Gawalee
Interdependence Tourism Sector Hospitality Sector Real Estate Sector
Tourism Sector
Overview ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Key highlights Source: CRISIL Research 28.97 10.81 Growth (percentage) 2891.75 1.64 April-Aug 2007 2242.26 1.48 April-Aug 2006 44.35 8.33 Growth (percentage) 659.33 0.38 Aug 2007 456.76 0.35 Aug 2006 Tourist Arrival (Million No.) Forex Earnings ( $ million) Particulars
Tourist arrival Source: KPMG Research
Tourism Sector fund Allocation Note :  * This fig. corresponds only to the provision for building tourism infrastructure, as against Rs 4,230 mn provided for the year 2006-07 Source  : CRISIL Research n.a 5,200* 2007-08 n.a  29,000 Tenth Plan Outlay  (2002-07) 8,300 8,300 2006-07 7,860 7,860 2005-06 5,000 5,000 2004-05 3,500 3,250 2003-04 Actual Expenditure (Rs mn) Budget Estimates (Rs mn) Year
Growth drivers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
HOTEL INDUSTRY India's hotel industry is experiencing an unprecedented boom, driven by increasing numbers of business and tourist arrivals. But how long can the good times last?
Overview ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Market Players
Types of hotels
EXISTING AND PROPOSED DISTRIBUTION TO HOTEL SUPPLY IN INDIA
PRIMARY DRIVERS OF GROWTH IN THE INDIAN HOTEL INDUSTRY
Emerging Hotel Concepts ,[object Object],[object Object],[object Object],[object Object],[object Object]
Ecotel ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Resorts ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Motels ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Floatels ,[object Object],[object Object],[object Object]
Service Apartments ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
CRITICAL FACTORS TO DRIVE FUTURE GROWTH AND PERFORMANCE
Challenges of Hotel Industry ,[object Object],[object Object],[object Object],[object Object]
Managing Demand The hotel industry is inherently prone to fluctuating demand with Occupancy Rate (ORโ€™s) in certain period 10 โ€“ 20 % lower than annual average. Source: Crisinfac Annual review of Hotel Industry 2006
Managing Demand ,[object Object],Domestic airline Load factor Directorate general of Civil Aviation Foreign Tourist Inflow FHRAI Tourism Statastics
Managing Demand ,[object Object],Average daily OR: City wise Average daily OR: By Hotel segment Source: FHRAI Hotel Survey 2006
Managing Demand ,[object Object],[object Object],[object Object],[object Object]
Managing Customer Mix ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Managing the Channel Sales Mix ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Real Estate Sector
Overview ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Growth Drivers
FDI in Real estate Sector
Indian Real Estate- Catalyst for Growth ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Challenges: Real Estate Industry
Projected investment by segment Residential, 67 % Commercial, 16 % Hospitality, 10 % Retail, 7 % Projected investment by segment (2008-2010)
Projected demand by City Chennai, 17 % Mumbai, 12 % Bangalore, 26 % Kolkata, 5 % Pune, 8 % NCR, 21 % Hyderabad, 11 % Projected demand by city (2008-2010)
Funding Options
Funding Options Strategic Investment Private Equity Initial Public Offering AIM/ Overseas Listing REIT
Strategic Investor ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Strategic Investor Source: KPMG 10,000 To develop an integrated township of  40,000  acres Residential Al Nakheel - DLF 4,000 A JV engaged in Pan India projects in residential, commercial, infrastructure & hospitality sectors integrated master plans & SEZ Mixed Use Emmar - MGF 300 For developing 100 Hotels , 10,000  rooms in next 10 years Hospitality Emaar MGF - Accor 220 To acquire & develop  7  properties in the country by  2010 Hospitality Rattha Group - Ascott 550 To develop  75  hotels & serviced apartment over next  7  yrs, subject to necessary approvals Hospitality DLF - Hilton 720 To construct  28  hotels in partnership with Marriott Hospitality Unitech โ€“ Marriot Amt Invested (USD mn) Details Project Type Company
Private Equity Investor ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Private Equity Investor Source: KPMG 600.0 NA DLF Assets DE shaw, Lehman Brothers Jul-  07 167.0 13.5 % Anant Raj Industries GIC, Morgan Stanley Dean Witter, Quantum (SOROS) May-  07 152.0 10 % Oberoi Constructions Morgan Stanley Jan- 07 350.0 15 % RMZ AIG Apr- 07 100.0 NA QVC Reality IL & FS Apr- 07 40.0 5 % Indiabulls Real Estate Ltd. Oberon (Farallon Capital) Jul-  07 Amount ( USD Mn) Stake Investee Investor Date
Initial Public Offering ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Initial Public Offering 114.31 x 11.0 % 126.7 Sobha Developers Dec-  06 61.84 x 18.3 % 220.2 Parshvnath Developers Dec-  06 81.05 x 10.0 % 80.0 Akruti Nirman Jan-  07 3.23 x 10.3 % 2296.9 DLF Jun-  07 6.60 x 14.0 % 371.0 HDIL Jul-  07 68.26 x 10.3 % 138.0 Omaxe Aug-  07 5.75 x 21.8 % 194.5 IVR Prime Aug-  07 1.91 x 10.1 % 214.7 Puravankara Aug-  07 Response received Stake Dilution Amount Raised Company Date of Listing
Initial Public Offering 25 % 13 % One Month Return 23 % 16 % Two Month Return 82 % 37 % Six Month Return Realty Index Sensex Returns
AIM Listing/Overseas Listing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
AIM Listing/Overseas Listing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
AIM Listing/Overseas Listing Source : KPMG Research -15 % 500 Trinity Apr-  06 -26 % 759 Hirco Apr-  06 -6 % 464 Ishaan Nov-  06 2 % 714 Unitech Dec-  06 -27 % 274 Dev Properties Jan-  07 25 % 325 Ascendas Aug-  07 Return since listing Amount Raised(USD Mn) Name of Company Date
FDI Equity Inflow
Leading the packโ€ฆ. Indian companies had a higher return on equity than other countries in Asia.
Gains in world stock exchanges
Government initiatives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Key factors to invest in hotel stocks ,[object Object],[object Object],[object Object]
Concluding Remarksโ€ฆ. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
THANK YOU
[object Object]

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Indian Hospitality Industry

  • 1. Indian Hospitality Industry Presented By- Mr . Shashank Gawalee
  • 2. Interdependence Tourism Sector Hospitality Sector Real Estate Sector
  • 4.
  • 5. Key highlights Source: CRISIL Research 28.97 10.81 Growth (percentage) 2891.75 1.64 April-Aug 2007 2242.26 1.48 April-Aug 2006 44.35 8.33 Growth (percentage) 659.33 0.38 Aug 2007 456.76 0.35 Aug 2006 Tourist Arrival (Million No.) Forex Earnings ( $ million) Particulars
  • 6. Tourist arrival Source: KPMG Research
  • 7. Tourism Sector fund Allocation Note : * This fig. corresponds only to the provision for building tourism infrastructure, as against Rs 4,230 mn provided for the year 2006-07 Source : CRISIL Research n.a 5,200* 2007-08 n.a 29,000 Tenth Plan Outlay (2002-07) 8,300 8,300 2006-07 7,860 7,860 2005-06 5,000 5,000 2004-05 3,500 3,250 2003-04 Actual Expenditure (Rs mn) Budget Estimates (Rs mn) Year
  • 8.
  • 9. HOTEL INDUSTRY India's hotel industry is experiencing an unprecedented boom, driven by increasing numbers of business and tourist arrivals. But how long can the good times last?
  • 10.
  • 13. EXISTING AND PROPOSED DISTRIBUTION TO HOTEL SUPPLY IN INDIA
  • 14. PRIMARY DRIVERS OF GROWTH IN THE INDIAN HOTEL INDUSTRY
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21. CRITICAL FACTORS TO DRIVE FUTURE GROWTH AND PERFORMANCE
  • 22.
  • 23. Managing Demand The hotel industry is inherently prone to fluctuating demand with Occupancy Rate (ORโ€™s) in certain period 10 โ€“ 20 % lower than annual average. Source: Crisinfac Annual review of Hotel Industry 2006
  • 24.
  • 25.
  • 26.
  • 27.
  • 28.
  • 30.
  • 32. FDI in Real estate Sector
  • 33.
  • 35. Projected investment by segment Residential, 67 % Commercial, 16 % Hospitality, 10 % Retail, 7 % Projected investment by segment (2008-2010)
  • 36. Projected demand by City Chennai, 17 % Mumbai, 12 % Bangalore, 26 % Kolkata, 5 % Pune, 8 % NCR, 21 % Hyderabad, 11 % Projected demand by city (2008-2010)
  • 38. Funding Options Strategic Investment Private Equity Initial Public Offering AIM/ Overseas Listing REIT
  • 39.
  • 40. Strategic Investor Source: KPMG 10,000 To develop an integrated township of 40,000 acres Residential Al Nakheel - DLF 4,000 A JV engaged in Pan India projects in residential, commercial, infrastructure & hospitality sectors integrated master plans & SEZ Mixed Use Emmar - MGF 300 For developing 100 Hotels , 10,000 rooms in next 10 years Hospitality Emaar MGF - Accor 220 To acquire & develop 7 properties in the country by 2010 Hospitality Rattha Group - Ascott 550 To develop 75 hotels & serviced apartment over next 7 yrs, subject to necessary approvals Hospitality DLF - Hilton 720 To construct 28 hotels in partnership with Marriott Hospitality Unitech โ€“ Marriot Amt Invested (USD mn) Details Project Type Company
  • 41.
  • 42. Private Equity Investor Source: KPMG 600.0 NA DLF Assets DE shaw, Lehman Brothers Jul- 07 167.0 13.5 % Anant Raj Industries GIC, Morgan Stanley Dean Witter, Quantum (SOROS) May- 07 152.0 10 % Oberoi Constructions Morgan Stanley Jan- 07 350.0 15 % RMZ AIG Apr- 07 100.0 NA QVC Reality IL & FS Apr- 07 40.0 5 % Indiabulls Real Estate Ltd. Oberon (Farallon Capital) Jul- 07 Amount ( USD Mn) Stake Investee Investor Date
  • 43.
  • 44. Initial Public Offering 114.31 x 11.0 % 126.7 Sobha Developers Dec- 06 61.84 x 18.3 % 220.2 Parshvnath Developers Dec- 06 81.05 x 10.0 % 80.0 Akruti Nirman Jan- 07 3.23 x 10.3 % 2296.9 DLF Jun- 07 6.60 x 14.0 % 371.0 HDIL Jul- 07 68.26 x 10.3 % 138.0 Omaxe Aug- 07 5.75 x 21.8 % 194.5 IVR Prime Aug- 07 1.91 x 10.1 % 214.7 Puravankara Aug- 07 Response received Stake Dilution Amount Raised Company Date of Listing
  • 45. Initial Public Offering 25 % 13 % One Month Return 23 % 16 % Two Month Return 82 % 37 % Six Month Return Realty Index Sensex Returns
  • 46.
  • 47.
  • 48. AIM Listing/Overseas Listing Source : KPMG Research -15 % 500 Trinity Apr- 06 -26 % 759 Hirco Apr- 06 -6 % 464 Ishaan Nov- 06 2 % 714 Unitech Dec- 06 -27 % 274 Dev Properties Jan- 07 25 % 325 Ascendas Aug- 07 Return since listing Amount Raised(USD Mn) Name of Company Date
  • 50. Leading the packโ€ฆ. Indian companies had a higher return on equity than other countries in Asia.
  • 51. Gains in world stock exchanges
  • 52.
  • 53.
  • 54.
  • 56.